Archive for February, 2009
Written by richard on 18 February 2009
It seems that everyday more and more bad news is on the horizon for the UK (and of course the World) economy. What causes me the greatest concern is the fact the inflation is going down (or is it) http://www.statistics.gov.uk/cci/nugget.asp?ID=19, we have the threat of Deflation according the comment from the Times http://business.timesonline.co.uk/tol/business/economics/article5750719.ece
However we have the Treasury keen on Printing Money which is going to be what? A. Inflationary.
The £ falling through the floor – in the main Inflationary.
High Levels (record levels) of Government Borrowing – all has to be funded for, and it can only come via increased taxation, save a miracle (which will be Inflationary).
The thing is there are no simple answers to our predicament, I just wish we could some some positive action by this Government that actually looks like it will make a difference, rather than more VAT Decreases.
Fingers Crossed eh, in the abscence of another plan it looks like this will be the one followed.
Happy Tuesday.
Richard Smith
0845 226 9106
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Written by richard on 16 February 2009
I wondered when it would happen and indeed the time is now.
http://business.timesonline.co.uk/tol/business/markets/article5721317.ece
For most investors with Life and Pension Plans there is no need to worry, most of the major UK Financial Services Businesses are having an interesting time.
For most consumers there is not a lot to worry about, Pension Funds are usually Ringfenced which means if there is a failure the funds are safe, for Life Assurance and other Investment Bonds (for example) there could be some concerns, however most will be well protected.
It is clear that the FSA is making all of the right noises, and these are preventative rather than an immediate threat. I might be wrong, but I have seen most of this before.
If you are concerned, get in touch I am more than happy to discuss the options with you and provide some guidance. Remember it might get worse before it gets better.
Richard Smith
0845 226 9106.
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Written by richard on 09 February 2009
As many readers of this blog will know I have long been a fan of many of New Stars funds and continue to support these during the transition of the business to its New Owners. Judgment over the funds and further recommendations will of course be reserved.
What further intrigues me is the comment from some so called Independent Financial Advisers about the New Star Heart of Africa Fund. Now I have debated long and hard with other Advisers about the use of New/Specialist/ Boutique Funds, importantly those without any form of history, or evidence of performance.
Now when making any investment recommendations of any description as an adviser we must make sure that the clients interest is paramount along with ensuring that the recommended fund actually makes sense, based on normal investment principles, past performance, stability of the Fund Management Team along with issues surrounding volatility and charges all of which provide information about the suitability of an investment amongst other factors (which are not for here).
In simple terms many so named advisers never done any of that, leaving clients wide open in an investment in something that clearly was very high risk.
It had taken some £80 million in investments and now is only valued at some £29 million (Source Morningstar) and has not had a positive return since just after it’s launched.
Now I know that the Investment Markets have not been kind to us over recent months, however this kind of Punt that this type of fund represents is just acceptable as part of balanced portfolio, however my guess is that many Independent Financial Advisers amongst others are culpable in this disaster and have not placed the correct emphasis on the risk of this fund failing and cost their clients dear.
As I keep saying, ” this is not rocket engineering. it’s investment”.
So if you think your advisers are not doing the job, get in touch, lets see where we can help.
Richard Smith
Independent Financial Adviser
0800 781 2031
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